KEY POINTS:
CANBERRA - Australia and the United States will start talks on an open-skies aviation deal within the next six weeks to open up the lucrative transpacific route between the two countries.
Australian Transport Minister Anthony Albanese gave approval for formal talks to start in Washington next month in a move which could lead to more US carriers flying to Australia via ports in Asia.
A spokesman for Mr Albanese said the meetings would be held between February 12 and 14.
A deal could clear the way for Australian airline Virgin Blue Holdings to begin flights to the United States on its carrier V Australia by the end of this year, edging open one of the world's most lucrative and protected long-haul routes.
Under the current aviation treaty between Australia and the United States, airlines based in either country can only launch four weekly flights on the route in the first year.
V Australia, which is 62 per cent owned by Toll Holdings, has asked for 10 weekly flights, having already placed an order for six long-range Boeing 777-300ERs with options to buy another six of the jets.
Australia's former conservative government rejected repeated requests from Singapore Airlines for permission to fly from Australia to the United States, protecting flag carrier Qantas from more competition on the route.
The new centre-left Labor Government, elected in November, has not yet said if it supports the entry of Singapore Airlines on the route.
Singapore wants access to new markets to help offset competition from low-cost carriers in Asia.
United Airlines is currently the only competitor to Qantas in non-stop flights to the US. It runs 14 flights a week to Australia. Qantas has 48 flights a week and reportedly generates as much as 20 per cent of its profits from the route.
A 2006 report for Singapore Airlines said Qantas charged 38 per cent more for flights from Sydney to Los Angeles than on the more competitive "kangaroo route" from Sydney to London.
Singapore Airlines estimates that opening the Pacific route to more competition could increase the number of travellers between the United States and Australia by up to 8 per cent.
Peter Harbison, chairman of the Centre for Asia Pacific Aviation, said opening up the transpacific route between Australia and the United States probably wouldn't have any great impact on New Zealand.
"New Zealand has its own agreement with Australia and the United States and they are about as open as you could possibly be."
He said opening up the route could result in a few more non-stop routes from Australia to the United States, possibly giving New Zealanders a few more options.
- Reuters
